U.S. President Barack Obama has won a second term in the White House, but what does it mean for Australia and your business?
With Australia's economy increasingly tied to Asia, BlackRock fund managers Andrew Swan and Joel Kim warn that the looming fiscal cliff in the United States could take a toll on Asian economies.
"From an Asian perspective, the major impact of the U.S. presidential election will be on investor sentiment, primarily as it relates to the impending “fiscal cliff”. If the automatic spending cuts are imposed, it would amount to an approximate 5% contraction in budgeted fiscal spending. This would clearly be negative for the U.S. recovery and the associated Asian export market," Swan says.
But Swan says a positive for Asia is the continuation of the U.S. Federal Reserve's monetary stimulus policy.
While Asia factors heavily into Australia's future, the fate of the U.S. economy has a more direct impact at home as well.
Bates Gill, CEO if Sydney University's U.S. Studies Centre, tells News Ltd that the U.S. remains Australia's biggest investor by a factor of five. Gill adds that Obama's re-election will keep American focus on Australia.
"So you can have a higher degree of confidence that Obama will keep America's focus here and see Australia as a key ally."
What do you think Obama's re-election means for the Australian economy and your business? Have your say in the comments section.